Coach's Three Tiered Structure
- Thread starter amateurjeweler
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My sister lives near an outlet and has gotten some incredible deals at her outlet....these are boutique bags that are returned to her outlet and marked way down. 1/3 to 1/4 of the regular price.
Can't blame her for scooping them up. She now knows where exactly they put the 'returned' bags in her outlet and goes there first to see what's offered.
Can't blame her for scooping them up. She now knows where exactly they put the 'returned' bags in her outlet and goes there first to see what's offered.
I read a theory on Reddit (and I don't recommend searching for it if you aren't into constant expletives and stupidity after the first post) that LV and Chanel burn/ destroy their unsold bags to get their customs fees refunded. That sounds plausible to me.
Yes, but... who is going to buy a brand new LV or Chanel to sell? Plus, the premier designers have periodic price increases that keep the resale market inflated. A new Speedy bought 7 or 8 years ago was half the price of a new Speedy today. So a seller of a 7 or 8 year old bag in good condition can recoup much of their investment.
I own quite a few Chanel bags and most do tend to retain their value.
Totally agree with this because I've had this happen with some of the LV's that I've sold.
Many do, most inadvertently. LV and Chanel do not have generous return policies like Coach (only 2 weeks). After the return/exchange period is up you are stuck with a bag and the only way to get rid of it is to sell. Anyway, I wanted to highlight a point that even for a brand new "designer" bag you are loosing a lot of money. So a used bag the loss is much more.
It's really the same for all designers. I purchased my first speedy 30 in my second year of college back in 2008 (8 years ago) at the LV boutique and paid around $700 before tax. They are $970 now, so definitely no where near half the price. Speedy 30s of that year have an approximate resale value between $500-$575 depending on condition.
Completely agree! Keep a classic style in rotation and continue to add on- trend colors; consumers will be able to count on a reliable style. I perused the Coach website last week and was thrilled to see the return of the classic leather duffle in some modern colors as well as the staples.
I've also 'heard' that they burn all of them, but I'm of the school that says that is a damn wasteful shame and not of the school that thinks they are 'protecting' their brand.
I would think they could part with at least a few bags that were scheduled to be burned to do the world some good. You know, donate a couple to those high dollar charity auctions that are attended by the rich and famous. The brand would be looked upon with good favor, women would get to bid on something they might normally buy, the charity would benefit from the proceeds and the donator would get a tax write off.....and ALL companies want tax right offs.
I would think they could part with at least a few bags that were scheduled to be burned to do the world some good. You know, donate a couple to those high dollar charity auctions that are attended by the rich and famous. The brand would be looked upon with good favor, women would get to bid on something they might normally buy, the charity would benefit from the proceeds and the donator would get a tax write off.....and ALL companies want tax right offs.
I agree, I think it is awful to burn the bags. So wasteful. Makes me appreciate Coach more--I would rather a business actually try to do something with their merchandise (even if it means it goes on sale later) versus burning it just to be "more exclusive".
They're not necessarily returns. When boutique bags are retired (Coach calls them "deletes"), any remaining stock is sent to the outlets to be sold at 50% or more off the retail price.